Pakistan’s Outlook & Growth Projections for 2023-24

Pakistan’s economic crisis deepens on average every 2 & ½ years due to a recurring balance of payment crisis, persistent energy crisis leading to mounting circular debt, skyrocketing to the Rs4 trillion Mark, unsustainable trade deficit, stagnation in exports, exchange rate pressures, low reserve cover, alarming low tax revenues & elevated high public debt. Pakistan has been facing the “boom-bust cycle” despite opting for 23 bailout packages from the IMF program, the economy is not out of the woods yet.

According to the National Accounts Committee, Pakistan’s provisional Real GDP figures stand at 0.29% against a full-year target of 5.01% & last year’s revised real GDP figures of 6.10% in 2021-22. The endogenous and exogenous multiple shocks have not only deteriorated Real GDP growth but also skyrocketed the cost of doing business due to the massive Rupee devaluation, the surge in Policy Rate, Energy tariff and taxation effects have led to the extended period of stagflation. This resulted in a loss of a whopping $34 billion in 2022-23 at the cost of economic growth, despite the population’s annual growth rate of 2.55% according to the PBS Digital Census 2023. This leads to the effective growth rate of negative at 2.26% for 2022-23. This 0.29% figure could further slide to negative due to double-digit LSM contraction as the full-year figure comes. Pakistan’s economic growth is viewed as one of the weakest economies in the South Asian region.

KCCI The Pulse Archive >>

TODAY’S TOP NEWS

Next IMF programme: Fitch says political uncertainty may complicate efforts

The close outcome of Pakistan’s elections and resulting near-term political uncertainty may complicate the country’s efforts to secure a financing agreement with the International Monetary Fund (IMF), to succeed the[…]

Continue reading

IP pipeline to be complete in 180 days

Islamabad has engaged Tehran by committing to complete the first phase of the 80-kilometer Iran-Pakistan (IP) gas pipeline project within Pakistan’s territory to avoid a looming $18 billion penalty. According to reports,[…]

Continue reading

Pak entrepreneurs visit Saudi Arabia today

Federal Minister for Commerce, Industries, Investment and Interior Dr Gohar Ejaz will depart for Saudi Arabia on Tuesday (today). The minister would be heading a delegation of 21 leading businessmen for BtB (business-to-business)[…]

Continue reading

FBR begins budget preparation exercise for FY2024-25

The Federal Board of Revenue (FBR) has started budget preparation exercise for 2024-25. In this regard, the FBR has sought budget proposals from all chambers of commerce and industry here on Monday. According to the FBR’s[…]

Continue reading

KCCI R&D Services